Goldtent TA Paradise

Teck

1. Sgt Schultz says:

   January 9, 2018 - 9:26 am at 9:26 am

   I agree that this is breakout is bullish, and I see the IHS, but isn’t a cup and handle typically a consolidation pattern that follows a previous upward trend?

   “The cup-and-handle pattern is preceded by an upward move, which stalls and sells off. The sell-off is what forms the initial part of this pattern. After the sell-off, the security will basically trade flat for an extended period of time, with no clear trend. The next part of the pattern is the upward move back towards the peak of the preceding upward move. The last part of the pattern, known as the handle, is a relatively smaller downward move before the security moves higher and continues the previous trend.

   Components of the Cup and Handle
   There are several components of the cup and handle that should be noted in order to evaluate the potential trading signal. First, it’s important that there is an upward trend before the formation of the cup and handle. In general, the larger the prior trend is, the lower the potential for a large breakout after the pattern has been completed. The reason being that a lot of the run-up in the security happened prior to the formation of the cup, again weakening the size of the potential upward move.”

   …Just asking—I’ve seen calls for Cup & Handles from Jesse (@ Café Américain) before, and they haven’t really worked.